Are You a Lonely CEO?

No, I’m not asking for a date.  But it’s a fact … being a CEO can be a very lonely place to be.

Most CEO’s think it’s all up to them.  Live.  Die.  On their shoulders.  All on your shoulders.

It doesn’t have to be that way.

I partner with CEOs to help them see their company in a new light — to find growth avenues they haven’t considered — to be a sounding board for good ideas, and for bad — to help transform the financial operations — to create a professional financial and operational presentation which attracts banks and investors.

Check out my video on how working with Medway Air Ambulance allowed that company’s value to go from $8 million to $21 million in just two years.  Founder/CEO sold 80% of the business and ended up with over 5x the after tax cash as he would have if had sold the business at the lower valuation.

I’m looking to partner with the CEO.  If you would like to discuss your company, either email me at Jeff@JeffVillwock.com, or give me a call at (678) 540-1300×1.

 

Baltimore Affordable Housing

I’m pleased to announce that C. Anthony Mitchell and I have created Community Redevelopment Fund, Inc. which will be the general partner and managing member of entities capitalized to purchase, renovate and resell affordable housing in Baltimore.

Anthony came to me with this idea about six months ago. Through some of his friends in the Baltimore area, he was introduced to several people and organizations that focus on providing affordable housing in older inner city neighborhoods. White flight in the 1950’s and 1960’s left these areas in poverty with vacant homes, rampant crime and drug traffic. However in Baltimore like so many other cities across the country, these inner city neighborhoods have begun a come back. We intend to help reform these neighborhoods by purchasing vacant homes, fully renovating the homes and reselling the homes. Buyers are largely government subsidized first time homeowners who can qualify for mortgages from traditional lenders.

We have just signed a contract to purchase our fifth home in the 4×4 neighborhood in east Baltimore. Our first home to be totally renovated should be ready next week for final inspection and a sale in early August. We have raised sufficient capital to purchase two homes per month,

How to Raise Capital

We have just released our new 51 page e-book to help CEOs to understand exactly how to raise capital in today’s world.

The book chapter headings pretty much tell the story about what’s included:

  • The Process of Raising Capital
  • Create the Financial Plan
  • Create the Operating Plan
  • Determine the Amount of Capital Needed
  • Determine the Terms of the Capital
  • Determine Type of Offering
  • Write the PPM
  • Subscription Documents
  • Escrow Agent
  • Your Investing Audience
  • Create your Investor Presentation
  • Create your Marketing Plan
  • Execute & Close the Offering

This book is a gift from us — you can get it here.  We are also making available a complementary One-Hour Consulting session for CEOs who want to raise capital.

Why would I do this?

We offer consulting services to businesses like yours and I know that some percentage of the executives we help with our Special Report and One-Hour Consulting session will end up as our clients.

We want to be clear —

Growth Equity – Is Crowdfunding the Answer?

Crowdfunding is gaining a lot of press.  The SEC has finally come out with proposed rules and regulations to allow companies to raise growth equity through crowdfunding.  But is that the answer for most entrepreneurs in search of capital?

It’s very important to distinguish between “investment crowdfunding” and “direct investor solicitation”.   Most people think of Kickstarter or similar web sites when thinking of “crowdfunding”.  On these sites, an entrepreneur may raise some capital as donations, giving investors back product or other promotions, but not equity in the company.  Generally the amounts raised are small.

“Investment crowdfunding” rules were just issued by the SEC in October and won’t be effective until May 2016.  In investment crowdfunding, companies will be able to raise up to $1 million per year, and unaccredited as well as accredited investors can participate.

While that’s a move forward and will surely seed a lot of companies, most existing companies that have proven concepts need more than $1 million in $5,000 or $10,000 increments.

The JOBS Act also opened the door for “direct investor solicitation”.   Before the law changed, companies could not “solicit” for investment.  As an example, a company could not run an ad in the Wall Street Journal saying they wanted to raise $5,000,000 in equity.  

Fed to Investors: Economy So Bad, We Can’t Raise Rates 0.25%

When the Fed announced that rates will continue to be Zero, the stock market soared — for about an hour and then plunged.  Today down another 200+points.

Why?  Real simple — The Fed actually said that the world’s economy is so fragile that a meaningless rate increase of 0.25% was potentially a real problem.  And I’ll give them credit for being right about this — had the Fed raised rates, the Dow probably would have been down 500 points instantaneously.

Someone sent me this picture a couple of days back — and if a picture is worth 1,000 words, this one is probably what weighted on the Fed.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This is downright depressing.  In the last 7 years, food stamp use has soared, as has the federal debt, the amount of money printed, student loans (which are future losses) and health insurance costs.  Obamacare reduces costs??  Really – don’t think so.

Greece: Potential Implication to Selling Your Business

If you’re like me, you’re tired of hearing about Greece and how this tiny part of the EU is upsetting equity and debt markets worldwide.  But if want to sell your business in 2015 or 2016, then you need to be alert to what’s happening beneath the headlines.

As I write this today, the equity and debt markets are the strongest and most available since early 2007.  Private equity and corporate cash is at record levels and we are seeing more interest in good deals than perhaps at any time in the last 10+ years.  Debt is plentiful, cheap and relatively easy to get.  Prices are at or near record levels for private companies.

Simply put … this may be the best time in at least 10 years to sell.

But that could change in an instant.  If we take a look under the covers of the financial markets and talk to the decision makers, people are getting nervous.   Nervous is bad … all equity and debt markets rely on confidence.  What we all experienced in 2008 was confidence being flushed down the drain.  If someone in Greece doesn’t have confidence in their bank,